CHARLESTON, W.Va. -- When Mike Hoover visited an ATM earlier this month to get his unemployment benefits with his state-issued Chase Visa debit card, he had $88.53 in his account. But after he withdrew $80, his balance was $5.78.

The machine had charged him $2.75 -- even though he'd used a Chase ATM.

It's not Hoover's only complaint about Workforce West Virginia's debit card program. At some banks, he can withdraw only $40 at a time, even though he's eligible for $140 a week in benefits. He's never received a monthly statement from either Chase or Workforce West Virginia, he said.

"This is not a user-friendly program by any means," said Hoover, a 54-year-old Air Force veteran who was laid off from the Kanawha County assessor's office earlier this year.

Hoover is one of 37,500 West Virginians using the debit cards, which Workforce West Virginia has given to everyone who's filed for unemployment benefits since late March.

The program doesn't cost the state a cent. Instead, JPMorgan Chase makes its money off fees charged to jobless West Virginians like Hoover. 

State officials say the program is saving them $340,500 a year by cutting back on postage and printing, and eliminating the time it takes to replace lost checks. But now, complaints about the cards and a recent technical glitch have prompted Workforce West Virginia to offer alternatives.

Under JPMorgan Chase's contract with the state, the company can't charge West Virginia unemployment-card customers when they use Chase, WesBanco or Allpoint ATMs.

But when the bank recently upgraded the computers that control its ATMs, a technical error hit people with a $2.75 transaction fee, Chase spokeswoman Nancy Norris said.

"It is fixed," Norris said Friday. "We have since refunded all the fees that we incorrectly charged."

After the Sunday Gazette-Mail asked Workforce West Virginia about the program last week, acting executive director Russell Fry released a statement saying anyone who doesn't like the debit cards can choose to get their unemployment benefits by check.

That option is available until the state can offer the benefits through direct deposit, which Workforce West Virginia is in the "final stages" of developing, said spokeswoman Jama Jarrett.

"We don't want to cause any undue stress," Jarrett said. "Our unemployment clients are already in a stressful situation as it is."

CHARLESTON, W.Va. -- When Mike Hoover visited an ATM earlier this month to get his unemployment benefits with his state-issued Chase Visa debit card, he had $88.53 in his account. But after he withdrew $80, his balance was $5.78.

The machine had charged him $2.75 -- even though he'd used a Chase ATM.

It's not Hoover's only complaint about Workforce West Virginia's debit card program. At some banks, he can withdraw only $40 at a time, even though he's eligible for $140 a week in benefits. He's never received a monthly statement from either Chase or Workforce West Virginia, he said.

"This is not a user-friendly program by any means," said Hoover, a 54-year-old Air Force veteran who was laid off from the Kanawha County assessor's office earlier this year.

Hoover is one of 37,500 West Virginians using the debit cards, which Workforce West Virginia has given to everyone who's filed for unemployment benefits since late March.

The program doesn't cost the state a cent. Instead, JPMorgan Chase makes its money off fees charged to jobless West Virginians like Hoover. 

State officials say the program is saving them $340,500 a year by cutting back on postage and printing, and eliminating the time it takes to replace lost checks. But now, complaints about the cards and a recent technical glitch have prompted Workforce West Virginia to offer alternatives.

Under JPMorgan Chase's contract with the state, the company can't charge West Virginia unemployment-card customers when they use Chase, WesBanco or Allpoint ATMs.

But when the bank recently upgraded the computers that control its ATMs, a technical error hit people with a $2.75 transaction fee, Chase spokeswoman Nancy Norris said.

"It is fixed," Norris said Friday. "We have since refunded all the fees that we incorrectly charged."

After the Sunday Gazette-Mail asked Workforce West Virginia about the program last week, acting executive director Russell Fry released a statement saying anyone who doesn't like the debit cards can choose to get their unemployment benefits by check.

That option is available until the state can offer the benefits through direct deposit, which Workforce West Virginia is in the "final stages" of developing, said spokeswoman Jama Jarrett.

"We don't want to cause any undue stress," Jarrett said. "Our unemployment clients are already in a stressful situation as it is."

Since March, a "handful" of recipients have asked to get their benefits by check instead of through the cards, she said. Workforce West Virginia granted those requests.

That's news to Hoover. When he called Workforce West Virginia to complain, they referred him to the bank, he said. The bank told him to call customer service.

Thirty other states also use debit cards for unemployment benefits, according to the U.S. Department of Labor's most recent count. Both consumer advocates and members of Congress have criticized the programs, saying they unfairly target the jobless.  

In August, the federal department issued an advisory to state workforce agencies, urging them to use direct deposit -- rather than debit cards -- for unemployed people who have bank accounts.

Among other things, the department also suggested issuing wallet-sized listings of all card fees; eliminating overdraft charges; and cutting or eliminating denial fees.

West Virginia signed a one-year contract with JPMorgan Chase in November. Six other banks also bid on the program, according to state Purchasing Division records. Other banks proposed more fees than Chase did.

West Virginians using the Chase Visa unemployment cards pay $2.75 to withdraw cash from ATMs outside the Chase network. They pay 75 cents to use the card to pay bills online, and 25 cents to check their balances at nonaffiliated ATMs. There's also a $1.50 fee if their card is denied for insufficient funds.

Everyone who gets a card receives a packet from the state explaining the fees and advice on how to avoid them.

But for people struggling to find work, those charges -- and the incorrect ATM fees Chase recently charged -- can add up, Hoover said. That money could help them fill their gas tank so they can drive to job interviews.

What's a minor glitch for Chase is an issue to people who are trying to get along, he said.

Reach Alison Knezevich at alis...@wvgazette.com or 304-348-1240.